YOUR PERSONAL LONG-TERM EARNINGS
Present annual income*Years until retirement $20,000 $30,000 $50,000 $100,000
10 229,276 343,916 573,194 1,146,388
20 537,406 806,110 1,343,518 2,687,036
30 951,508 1,427,262 2,378,770 4,757,540
40 1,508,027 2,262,038 3,770,061 7,540,122
50 2,255,939 3,383,908 5,639,843 11,279,686
*Table assumes 3 percent increase in annual income
THE COST OF NOT SAVING
Age 10 20 30 40
25 $1,051,518 $1,390,078 $1,499,086 $1,532,183
35 $338,560 447,468 480,665 -
45 109,008 142,105 - -
55 33,097 - - -
Table assumes 12 percent interest on $2,000 for stated number of years
Withdrawal is at age 65
THE BENEFITS OF SAVING IN AN IRA
Name Age Years until retirement IRA Total ending investment
Emily 25 40 Yes $4,091,908
Steve 25 40 No $878,674
Lori 40 25 Yes $489,424
David 40 25 No $177,081
Amy 55 10 Yes $46,699
Tom 55 10 No $26,425
Table assumes a $2,000 contribution is made each year with a 15 percent rate of return.
The investments made without the benefit of an IRA are subject to a 28-percent tax bracket.
Chart courtesy Smedley Financial Services Inc.